Sugar Factory faces eviction at Circle Centre
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The landlord for Circle Centre Mall in downtown Indianapolis has filed a lawsuit to evict Sugar Factory, alleging that the restaurant has defaulted on its rent.
The lawsuit, filed in Marion County Superior Court in March by Circle Centre Mall LLC, claimed that Sugar Factory subsidiary SF Indianapolis 88 LLC had been in default on its lease at the northeast corner of Maryland and Illinois Streets since January 2023.
A copy of a letter sent to Sugar Factory on Jan. 23 said that it owed $333,779 in back rent. An eviction hearing for Sugar Factory is set for May 1.
According to another letter presented as an exhibit in the lawsuit, the mall told Sugar Factory in January that it would terminate its lease on Jan. 31, after having sent two default notices by mail and seven by email.
Sugar Factory has remained open since.
New York City-based Sugar Factory opened the restaurant and storefront at 49 W. Maryland St. in April 2022, replacing the Palomino restaurant that had occupied the space for 23 years. The 9,657-square-foot store features a 184-seat dining room, a bar area, patio seating, a Pretty in Pink Cafe space and a candy retail store.
In its lawsuit, filed in March, Circle Centre Mall LLC also alleges Sugar Factory has failed to install permanent signage outside its storefront, as required by its lease. Earlier this month, Sugar Factory installed several signs along its Illinois and Maryland facades.
A copy of the lease agreement indicates Sugar Factory’s current rent rate is $35 per square foot per year, totaling about $351,750, plus 8% of gross sales. Circle Centre Mall is asking to repossess the space, for full payment of back rent, and coverage of attorneys fees, interest and additional damages that would be determined at trial.
Representatives for Sugar Factory have not yet filed a response to the suit with the court, according to online court records.
Sugar Factory previously faced a lawsuit from the owner of Mall of America in Minneapolis, with owners there alleging the company owed more than $2 million in rent. However, the owner dismissed the lawsuit earlier this month.
Circle Centre Mall ownership through a spokesperson declined to comment for this story, stating it does not discuss ongoing litigation. Sugar Factory did not return a request for comment sent Monday through the media contact form on its website.